Just a few months ago, Rithick Sirpal was on a university course which he hated. Now the 21-year-old is the envy of his friends after joining Samuel Leeds’ academy and going into property full-time. Over the last few weeks, Rithick, a contestant in The Eviction 2022, has made £5,000 from sourcing real estate deals for investors. He also has two rent-to-rents which generate around £2,000 a month and spends just a few hours a week managing them.
‘I had near zero to invest’
It was never Rithick’s intention to go into property investing until he read a book about it by his church leader and discovered he didn’t need money to get started. After researching the subject further, he came across Samuel Leeds and his YouTube channel.
Keen to find out more, Rithick attended his first Property Investors Crash Course in September 2021 and then enrolled on the academy which was to change his life.
“I saw endless opportunities and Samuel’s energy just made me think this is it. This is what I’ve been looking for,” Rithick explains. “At the same time, I didn’t want to go to university any more. The course I was doing was pharmacy which I absolutely hated.”
At the end of his first year, he failed one exam which put him back by a year. It gave him time to reassess his options.
Despite having ‘near zero to invest,’ as Rithick describes it, the academy taught him how to profit from the housing market using creative strategies, such as rent-to-rents. As the name suggests, this allows a person to rent a property and then to rent it out at a higher rate, providing all the correct permissions are in place.
Rithick learnt that for someone in his position there were two ways of funding an arrangement like this. He could either take out a loan or find a joint venture partner.
His father financed his first rent-rent on an HMO which he secured last April. Rithick now manages it, and they share the revenue. Some strategic name dropping helped him get the deal over the line, he admits.
“The landlord was ready to give it to me until he saw my company was new. Then I mentioned Samuel Leeds and he said I’ll give you a chance but only because I know him, and he’s got a good track record.”
By promising to carry out cosmetic improvements, he was able to negotiate a two-month, rent-free period, with no guarantor required and no deposit to pay.
His dad footed the refurbishment bill which came to about £2,000. He also did a lot of the work. Had they brought in painters and builders this would have doubled the cost, says Rithick.
In August, he took on a serviced accommodation unit in Birmingham, again on a rent-to-rent basis, borrowing money this time to cover his expenses.
“One of the mentors on the academy said to me why don’t you just take out a loan. You will be giving less of your profits away and you’ll be able to pay it back quickly. Because I know Birmingham, I was sure it was an area that would work. He helped me with the numbers as well. Even in low season I was looking at making between £800 and £1,200 a month and I would be able to pay back the loan in three or four months’ time.”
As part of the agreement, Rithick pays the landlord a guaranteed monthly rent. Typically, someone taking on a rent-to-rent will put a few thousand pounds into the deal. A contract has to be drawn up. The accommodation may also need furnishing and the owner of the property could ask for a deposit or rent in advance.
From having been at a low ebb in his life, the student was able to turn his fortunes around.
‘Four months into the academy I still had no deal’
Whilst Rithick makes a good living from property these days, success didn’t come easily. Four months into the 12-month academy programme, he still hadn’t pulled off a deal – much to the embarrassment of Samuel Leeds and himself. It took some ‘not-so-gentle’ encouragement from his tutor-in-chief to finally get him off the mark.
“I thought I was putting enough work in but compared to what I do now it was nothing. I needed a kick. I think that’s the way I work.”
Taking part in Property Investors’ Apprentice-style Eviction competition also showed him that he needed to up his game. While other contestants were prepared to work into the early hours to complete the challenges, he was ready to go to sleep by midnight.
“It was different to the work ethic I expected. It was such an eye-opener. I thought this is how I need to be working. If I did the exact same thing with my business I’d be going so far. I got my serviced accommodation right after that.”
Age was a factor too in his slow progress initially. “When I was coming on property courses, so many people would come up to me and say ‘You’re only 19? I wish I was your age when I started.’ But then when I was going into the real world, and trying to speak to landlords and agents, they would look at me and think, what would you know about property?”
Gradually, as Rithick put in the extra work in and made more and more calls, which he recorded while Samuel listened in, he improved.
Sometimes his youth has been an advantage, as was the case with his SA.
“When they realised that I was their son’s age and had a similar mentality, they said take this one. In fact, they’re ready to give me another one very soon.”
The next stage is to try to expand his portfolio by seeking out more investors.
“There are a lot of people who have money sitting in the bank. They just want a little bit of a return on their money. I’m looking to give them eight to 10 per cent of the profits each month but make them put the money upfront and then after say a year give them their initial amount back. That way I get to keep a lot more of my profits and I can invest in a lot more property deals.”
If he were to use his own money, it would take him much longer to scale up his business, he points out. There is also the possibility of selling a deal and then using the profits from that to invest in another rent-to-rent.
His definition of deal selling is finding a property, gathering all the information about it, identifying an investor who is looking for that kind of opportunity and then passing it on to them for a fee.
He had one client already lined up who wanted a rent-to-serviced accommodation place in the centre of Birmingham. It was a challenge with a tight deadline, but he was confident it could be done.
“I’ve worked so hard over the last two months and built so many connections with so many people just ready to give me deals. So, I said, ‘I will find you a deal.’ I had eight weeks to do it.”
True to his word, Rithick found a rent-to-SA and packaged it up, only to receive a call informing him it had been sold to someone else. Then a month later he was told the property was available again.
“I told my investor who said, ‘Yes I want it.’ Within about three days everything was done and dusted with the money in the bank.” It was that deal which earned him £3,000.
‘Being surrounded by millionaires instead of students was a massive upgrade’
Rithick feels like he has been on a long journey, although he is still only at the start of his new career.
“A year or so back I didn’t know what I wanted to do. After I failed that one exam and was told I have to do it at the end of another year it felt quite daunting.
“Coming from an Asian background as well, there’s this expectation you have to get a degree. It’s funny because a lot of people from my background when they first came to this country always had a business. That’s how they got rich. Yet now they push their kids into jobs which I will never understand.”
His parents supported his decision to leave university last September when they saw how much was coming in from his rental business.
After doing his legwork and establishing himself, the young entrepreneur doesn’t need a conventional job, nor could he imagine ever having one.
“I don’t understand how I could put in 40 hours a week every month and then only earn £2,000. I’ve just sold one deal and I made £3,000. I’m passively making about £2,000 a month as well from my rent-to-rents and I’m not putting in more than five to seven hours a week in total on them.”
He adds: “I have friends at university who are always complaining to me they hate it because it’s too many long hours and I’m like you should just get into property.”
The Property Investors Academy has thrown him into a completely different world to the one the former undergraduate was used to.
“Coming from being around university people who just want to go clubbing and drinking to being surrounded by millionaires and people who want to be successful in life was a massive upgrade.
“One line that’s always stuck with me is that your environment is greater than your willpower. That was a big reason why I wanted to join the academy. I thought if I get myself in that environment there is no way I cannot be successful.”
Rithick is a young man on a mission. Aside from systemising his business and moving into other strategies like buy, refurbish, refinance and developing, he has another goal – which is to use his income and free time to serve the church as a minister.
“I first came to Christ in May 2021. It all started with my sister who passed away then. She was a Christian and the love and support the church gave us as a family really touched me. It made me want to help people in the same way.”
Rithick’s tips
- My advice to someone who is struggling to find a deal at first is don’t compare yourself to anyone else.
- Don’t trick yourself that you’re putting the work in when you’re not. Be ready to put the hours in. Initially you have to do that.
- You need to work smart and hard.
Samuel Leeds’ verdict
“Property gives you an active and passive income. Rithick has now got the time to get involved in ministry and do the things he feels passionate about. I believe that not only will he go on to make loads of money he is also going to help a lot of people.”
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